Saturday, July 2, 2011

NY Attorney General subpoenas BofA, again

The subpoenas relate to a civil-fraud investigation brought against the bank and its executives by the state's former attorney general Andrew Cuomo, the paper said.

Cuomo, now the governor of New York, accused the bank, its former CEO Kenneth Lewis and other executives of intentionally failing to disclose massive losses at Merrill ahead of a December 5, 2008, shareholder vote on the merger.

Cuomo also alleged that the defendants later misled the federal government in arguing that a "surprise" increase in Merrill's losses allowed the bank to back out of the merger unless it received massive taxpayer help